Allocation of Administrative Costs Wical Rental Management Services manages four apartment buildings, each with a different owner. Wicals CEO has observed that the apartment buildings with more expensive rental rates tend to require more of her time and also the time of her staff. The four apartment buildings incur a total annual operating expense of $7,345,733, and these operating expenses are traced directly to the apartment buildings for the purpose of determining the profit earned by the building owners. The annual management fee that Wical earns is based on a percentage of total annual operating expenses and is negotiated each year. For the current year the fee rate is 6%, and Wical has the following information for current year average rental rates and occupancy rates.

Apartment Complex	# of Units	Average Occupancy	Average Rent
Cape Point	100	88%	$1,895
Whispering Woods	250	77%	$1,295
Hanging Rock	200	72%	$995
College Manor	350	82%	$895
Total	900

Required Answers - please show math 1. For the current year, Wical must choose between the number of units in each complex, the average occupancy, or the total annual rental revenue in each complex to allocate the management fee. Explain your choice of method and show how much of the management fee would be allocated to each apartment building using your method. 2. What ethical issues, if any, are involved in the choice of method in requirement 1?